For more information about Iowa agriculture, contact:
Department of Agriculture and Land Stewardship, Wallace State Office
Building, Des Moines 50319; 515/281-5321

Agriculture rebounded at a strong rate into the 1990s
as farmland once again became a desirable investment, pushing land prices
to a level that is two and a quarter times the low set during the farm
crisis. Record meat production and record or near record production
of corn and soybeans has resulted in plentiful supplies of food and
fiber. U.S. agricultural products were in strong demand around the world
until 1998, when the Asian market cooled and other countries became
competitive in the world market. Net farm income reached record highs
as commodity prices inched to new levels. Domestic and world demand
kept carry over supplies drawn down to low levels. New production technologies
were introduced for both crops and livestock during the 1990s and American
farmers were quick to adopt them. Precision farming techniques such
as genetic modification of crops for the protection against pests and
adoption of swine production models are replacing conventional practices.
This has enabled the American farmer to surpass domestic and world demands.
As the century draws to a close, farm gate prices dipped to extreme
lows as supplies exceeded demand, forcing agriculture into a period
of difficult times following a decade of strong recovery during the
late 1980s and early 1990s.

As Iowa agriculture enters the 21st century, Iowans increasingly understand
the need to aggressively market agricultural commodities around the
world. This has resulted in many farm products being converted into
value-added goods while still in the farm sector. Research initiatives
and shifts in consumer demand have resulted in the introduction of new
products, enabling the producers to further diversify the state's production.
Specialty crops have opened new markets as farmers produce special varieties
of corn and soybeans with characteristics particularly useful in the
food and pharmaceutical fields. Iowa producers market organically grown
crops and medicated free livestock.

Driven by consumer demand for pesticide and fertilizer-free products,
and an interest to apply creative and alternative solutions to low commodity
prices, many Iowa producers have taken the lead nationally to implement
organic practices. These innovative and dedicated producers are providing
high quality organic agricultural products for local, national and international
markets. As markets for organic products have expanded, certified organic
acreage in Iowa has increased. By enacting the Organic Agricultural
Products Act of 1998, the Iowa legislature recognized the need to protect
both farmers and consumers of agricultural products labeled organic
in the state of Iowa. The Act encourages and enables Iowans to produce
agricultural products for the organic market by setting attainable standards
and a system of verification-of-compliance with these standards through
a state organic certification program. This program is administered
through the Organic Agriculture Section within the Iowa Department of
Agriculture and Land Stewardship.

Preserving Family Farms

Iowa is the heart of the nation with 33 million acres
of land divided into 97,000 farming units. The number of farms has declined
to a little less than half the number that were in the state a half
century ago. The land used by agriculture has decreased by 1.5 million
acres over the last five decades as this land was converted into recreational
and conservation facilities, interstate highways or commercial and residential
developments. About a quarter of a million of the 2.9 million Iowa residents
are on farms, which is only a third of the number who resided on farms
50 years ago.

The number of individual farm operations declined sharply in the mid
1990s as consolidation and restructuring took place. Programs implemented
by the state and federal governments in the mid to late 1980s provided
support that many of the financially stressed operations needed to survive
the farm crisis. One of the most popular was the Conservation Reserve
Program (CRP) which began in the mid 1980s. As CRP contracts reached
their fulfillment date, many owners of the land decided it was time
to let someone else bring this land back into production.

Producers across the state are always looking for ways to lower costs
per unit of production. The two most common ways to achieve this goal
are by optimization of the farming units and use of precise cultural
practices. This has lead producers to adopt minimum or no tillage and
precision fertilization practices.

Protecting our Natural Resources

As we near the close of the millennium, we celebrate numerous conservation
successes, but also recognize the considerable work yet to be done.
Iowans can take pride in conservation milestones such as: 100,000 acres
of conservation buffers, 100 miles of cold water stream protection,
50 years of conservation education, 50,000 acres of restored wetlands,
50 years of watershed protection, 100 years of soil survey, 50% of crops
in conservation tillage, over 100 water quality projects, 100 years
of building diversity in wildlife habitat, and $100 million in state
cost-sharing for conservation.

Our vision for Iowa and agriculture includes farmers
and their neighbors working together to understand shared needs for
productive and profitable agriculture and a quality environment. Iowa's
soil and water conservation districts are a focal point for sharing
ideas, solving agricultural and environmental problems, and coordinating
federal and state programs to assist farmers and communities.

Groundwater Protection

After World War II, many countries began extensive use of man-made
chemicals, particularly in relationship to agriculture. It was a new
field without much history to quantify the consequences of indiscriminate
use of agricultural chemicals. In recent years, we have begun to recognize
that there must be a great deal of responsibility accepted in the judicious
use of chemicals due to their long-term effects on our environment.

Iowa state government began laying the groundwork for a conscientious,
studied approach to this problem in the 1980s and developed the Groundwater
Protection Act of 1987. It was determined that in the agricultural environment,
more discrimination in the application of agricultural pesticides and
fertilizers was needed. Therefore, the Groundwater Protection Act required
more stringent training and testing of all pesticide applicators and
licensing of all major pesticide retail outlets.

Today, the Groundwater Protection Act raises on average $3.5 million
annually to fund research and education projects to limit the use of
agricultural chemicals as well as research into the health effects of
environmental contamination. More than $925,000 is collected from fees
imposed on nitrogen-based fertilizers and more than $2,575,000 is collected
from pesticide registrations. The Agriculture Management Account distributes
funds to the Iowa Dept. of Public Health, the Iowa Dept. of Agriculture
for demonstration projects regarding agriculture drainage wells and
sinkholes, the Leopold Center for Sustainable Agriculture at ISU, the
Iowa DNR for administering grants to counties and conducting oversight
of county-based programs for the testing of private water supplies and
closure of abandoned wells and, the Iowa Dept. of Agriculture for financial
incentive programs related to agricultural drainage wells and sinkholes.

Marketing Iowa Agriculture

Iowa has a history of being one of the leaders in U.S. agricultural
production and today is no exception. Currently, Iowa leads the U.S. in
corn, soybean, and pork production. In addition, Iowa's egg industry has
grown to number two in the country with current projections pushing Iowa
to number one at the beginning of the next century.

The production of farm commodities is big business
in Iowa, generating sales of $12 billion annually. These commodities
are exported to countries throughout the world. Iowa is second in the
nation in exports of agricultural commodities. Iowa exports reduced
the trade deficit by over $57 billion in 1997.

The Agricultural Marketing Bureau in the Iowa Department
of Agriculture and Land Stewardship works to promote and add value to
Iowa's commodities in addition to commodity price reporting. This is
accomplished by covering the sale of livestock at 18 auctions with the
Livestock Market News Program. Cash corn and soybean prices are gathered
and reported by the Grain Market News Program which provides an overview
of the cash grain prices reported by 47 elevators all over Iowa. In
addition, the marketing bureau works to advance value-added agricultural
enterprises through trade shows and the development of promotional activities
and events.

Agricultural Diversification

Recognizing the need to rebuild and diversify Iowa's
agricultural economy in the wake of the economic crisis of the 1980s,
an Agricultural Diversification Bureau was established within the Department
of Agriculture and Land Stewardship in 1987. Emphasizing the development
of the state's horticultural industry, the bureau has helped expand
the farmers market system in Iowa from 64 markets in 1986 to more than
123 markets in l998. The section has also developed public service announcements
and product directories to assist producers of fruit, vegetables and
Christmas trees to enhance sales.

The Farmers Market Nutrition Program is a federal-state
partnership designed to provide a supplemental source of fresh fruits
and vegetables for the diets of women, infants and children who are
determined to be nutritionally at risk and to promote agricultural diversification
by stimulating the demand for fresh fruits and vegetables at farmers
markets. The program has grown from serving 1,700 eligible clients and
25 producers in 1987 to serving 49,316 needy Iowans at 88 farmers markets
in 1998.

The Ag. Diversification Section also serves alternative
crop and livestock producers by providing assistance on the marketing
of products and management for new enterprises.

Food Safety

The people of the U.S. and world have become more
and more dependent on fewer and fewer farmers for their food. Therefore,
it is essential that quality products be provided in quantities sufficient
to provide every man, women and child with a wholesome diet. Iowa's
agricultural industries, producers and government are cooperating in
efforts to assure the safety of our agricultural goods.

Cooperative state and federal programs jointly monitor and test both
raw and processed food products. Dairy, meat and poultry products are
subject to intense scrutiny at several levels from the farm to the grocery
shelf. Organically produced crops and medication free livestock are
produced under standards established by the Iowa Department of Agriculture
and Land Stewardship to assure the consumer that they are purchasing
wholesome products grown under strict guidelines. The monitoring of
the health and well being of livestock built additional safeguards into
the food production system during the production phase. An important
component for sound healthy animals is high quality wholesome feed.
The Iowa Department of Agriculture and Land Stewardship conducts an
assurance program that measures the ingredients in feed mixtures.

Agricultural Financing

Rising interest rates and reduced credit availability created the
need for a financial assistance program for beginning farmers in the
late 1970s. An innovative financial assistance program was established
in 1981, which later became a division of the Department of Agricultural
and Land Stewardship. This division, the Iowa Agricultural Development
Authority, assists new and existing farmers with low net worths in obtaining
financing. Since it began, more than 2,600 low-interest loans totaling
nearly $262 million have been closed.

The Loan Participation Program was established in 1996 to assist low
income farmers with down payment funds. The authority reduces the lender's
risk by providing a "last in, last out" loan participation
with a lending institution. To date, 50 loans have been closed totaling
$1.9 million.